Impact of Labor Mobility on Comparative Advantage of Manufacturing Industries in China: Empirical Analysis
International Journal of Business and Economics Research
Volume 7, Issue 2, April 2018, Pages: 25-30
Received: Mar. 7, 2018;
Accepted: Mar. 28, 2018;
Published: Apr. 28, 2018
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Shuang Zhao, School of Business, Nanjing Normal University, Nanjing, China
This paper studies the impact of labor mobility on comparative advantage of China’s manufacturing industries. Labor mobility refers to labor movement across regions and industries. Comparative advantage refers to better product performance in international trade in aspect of quality and price, and it can be reflected directly in export values. Industries with comparative advantage have more benefits in international trade. Firstly, this paper reviews literatures that focus on impact of labor market on comparative advantage. Secondly, this paper illustrates the mechanism of how labor mobility has impact on comparative advantage. Thirdly, the empirical analysis tests this mechanism through mixed OLS (Ordinary Least Square) regression and one-way FEM (Fixed Effects Model), using panel data of China subdivision export. The results of empirical analysis support the mechanism. Lastly, this paper reaches a conclusion that higher labor mobility has positive impact on comparative advantage in highly volatile industries, due to the fact those industries in higher labor mobility regions have stronger ability and lower cost to adjust production scale when confronted with economic shocks.
Impact of Labor Mobility on Comparative Advantage of Manufacturing Industries in China: Empirical Analysis, International Journal of Business and Economics Research.
Vol. 7, No. 2,
2018, pp. 25-30.
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